Nikkei holds 66026 support as weekly uptrend stays intact

Nikkei is digesting a week of sharp gains with a shallow intraday pullback, but the structural bid has not been withdrawn.

The index is off 0.48% on the session, trading inside a 65823.5 to 67043.5 range. No singular macro catalyst is driving the softness — this reads as profit-taking against an overextended short-term move after a weekly gain exceeding 3.5%. Importantly, price found immediate demand near the session low and has since stabilised.

For a trend-following desk, the EMA structure remains the anchor. Price sits well above EMA20 at 65030, EMA50 at 65256, and EMA200 at 63314, with the full stack aligned to the upside. The 1H and daily trends both point up, though the 4H has gone neutral — hence a mixed trend alignment reading across timeframes. RSI is neutral, leaving room for the next leg without momentum becoming a headwind. Volatility is extreme relative to the historical norm, so position sizing deserves attention, but extreme volatility inside a trending market is consistent with continuation rather than reversal. The progression of prior broken levels — 64589, 65568, now 66026 — argues the staircase structure is intact and dip buyers remain engaged.

We look to buy dips into the 66026–65568 zone where demand has repeatedly shown. A daily close below EMA50 at 65256 invalidates the call and signals a deeper correction is underway.